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Court Halts Overtime Rule, Leaving Employers in Limbo

A new rule set to go into effect on Dec. 1 makes millions of Americans eligible for overtime pay, but now faces an uncertain future. WSJ's Melanie Trottman explains strong challenges the new rule faces from both courts and President-Elect Donald Trump, who has promised to roll back business regulations. Photo: Getty

U.S. employers have spent months adjusting employee schedules, job duties and pay ahead of a new overtime rule set to take effect next week. But an order from a federal judge on Tuesday puts the fate of the rule into question.

The preliminary injunction essentially halts the implementation of a rule that would have required employers to start paying overtime to workers earning salaries of less than $47,476 a year, making millions...